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What is Comprehensive Physical Damage Coverage?

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Comprehensive Physical Damage Coverage

What is Comprehensive Physical Damage Coverage?

Comprehensive auto insurance covers damage caused by incidents other than a car accident, including fire, vandalism, weather, falling objects, theft, and any damage caused by an animal. While these events may sound like super-rare or freak occurrences, all of these things happen more often than you might imagine, and you just never know when you might get a streak of bad luck. Isn’t that what insurance is all about, anyway?

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The cost of comprehensive coverage depends on a number of factors; the age and value of the car, any safety features or alarms that may be installed, and the type of car and cost/frequency of repairs. The deductible can range from $250 to $1,000, and the lower the deductible, the fewer charges you’ll have to pay before insurance coverage kicks in, but the higher your premium will be, and vice-versa.

Is Comprehensive Physical Damage Coverage Required?

Comprehensive auto insurance is not required in any state – in fact, a driver must typically have collision insurance in order to be able to purchase comprehensive coverage, although this is not always the case, so check with your insurer.

That being said, drivers who lease or finance their cars are usually required to carry comprehensive physical damage coverage in order to protect the car owner or lender’s investment.

When deciding if comprehensive auto insurance is something you should consider, think about your driving and parking habits. Do you park in an area known to have vandalism, or live in a flood zone? Your car’s current value will also give you some good insight. Would you have the means to fix the car on your own in the event of a hit-and-run? A new or high-value car may cost much more to fix out-of-pocket. To help determine the current value of your car, check out the free appraisal tools on Kelley Blue Book, NADAguides, or Edmunds.

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Here, a representative from Murray Group Insurance Services, Inc. gives us an in-depth explanation of Comprehensive Physical Damage Coverage: